@Christine Lagarde “Let us not forget that we are just coming out of one of the biggest financial crises in centuries.”

Yes, but now, three years later, what is really scary is that the regulators have yet not been able to understand, and much less acknowledge, the monstrous mistake they did when defining capital requirements for banks based on the credit ratings being right, instead of taking the precautions to safeguard the financial system for when these ratings would be wrong.

Never ever has so much pro-cyclicality been introduced and, to top it up, they are now awarding some systemic important financial institutions “too-big-to-fail” franchises, paid for with some minor capital increases in comfortable installments, and de-facto leaving all “systemic un-important and irrelevant financial institutions” hanging in the air.

We cannot but hope that “the largest, biggest, and most powerful brain power assembled together under one roof” starts functioning better. Good luck Mme Christine Lagarde, it behooves us all you have tons of it.

I do not really have a problem with the credit ratings… the raters are human and fallible, and, if you allow for Heisenberg´s uncertainty principle to come into play, then the more precise you try to measure the creditworthiness of a borrower the more you might affect that same creditworthiness.

But I sure have a problem with regulators that should know that their only real concern is when credit ratings are wrong and that they have no problem whatsoever when the credit ratings are right, and still they ordain capital requirements for banks that are based on the ratings being right. I just do not want regulators of that sort looking over our banks, and especially those who when regulating have not even defined the purpose of our banks.